- Record Annual Revenue of $445.4 Million
- Annual Gross Profit Margin of 48.1 Percent of
Revenue
- Record Annual Earnings Per Share of $2.20
Cabot Microelectronics Corporation (Nasdaq:CCMP), the world's
leading supplier of chemical mechanical planarization (CMP)
polishing slurries and a growing CMP pad supplier to the
semiconductor industry, today reported financial results for its
fourth quarter and full fiscal year 2011, which ended September
30.
Total revenue during the fourth fiscal quarter was $109.7
million, reflecting a decrease of 0.5 percent compared to the same
quarter last year and a decrease of 1.9 percent compared to the
prior quarter, amid generally soft semiconductor industry demand.
The company achieved a gross profit margin of 46.4 percent of
revenue in the fourth fiscal quarter, diluted earnings per share of
$0.40 and cash flow from operations of $34.0 million. For the full
fiscal year, total revenue was a record $445.4 million, gross
profit margin was 48.1 percent of revenue, diluted earnings per
share were a record $2.20 and cash flow from operations was $93.6
million. The company's balance sheet reflects a cash balance
of $302.5 million and no debt outstanding as of September 30,
2011.
"I am pleased with the strategic investments we made during the
year, which we believe will continue to strengthen our global
position for the future," said William Noglows, Chairman and CEO of
Cabot Microelectronics. "In fiscal 2011, we opened our new
research, development and manufacturing facility in South Korea,
expanded our manufacturing capacity in Japan and Singapore, and
developed and commercialized innovative, high quality products
across each of our business areas. I am confident that these
investments will serve us well as we continue to collaborate
closely with our customers around the world and provide
differentiated solutions to meet their evolving business
needs."
Mr. Noglows continued, "We remain mindful of the uncertain
macroeconomic outlook and recent semiconductor industry
trends. Moving into fiscal 2012, we intend to continue to
proactively manage our business activities and respond quickly to
changing trends in the ongoing execution of our strategies to
strengthen and grow our core CMP consumables businesses."
Key Financial Information
Total fourth fiscal quarter revenue of $109.7 million represents
a 0.5 percent decrease from the $110.3 million reported in the same
quarter last year and a 1.9 percent decrease from $111.8 million in
the prior quarter. The company believes that the decreases in
revenue from the same quarter last year and the prior quarter
primarily reflect softening of demand within the global
semiconductor industry.
Total revenue for the full fiscal year was a record $445.4
million, which represents a 9.1 percent increase from $408.2
million in fiscal year 2010. Revenue from each of the
company's CMP slurry business areas, its CMP polishing pads
business and its Engineered Surface Finishes business increased
from the prior year. Full year revenue grew in each geographic
area in which the company operates, except for Japan. Sales
were especially strong in South Korea, where the company's revenue
grew approximately 32 percent compared to last year.
Gross profit, expressed as a percentage of revenue, was 46.4
percent this quarter, compared to 48.7 percent in the same quarter
a year ago and 47.4 percent in the prior quarter. Compared to
the year ago quarter, gross profit percentage decreased primarily
due to higher fixed manufacturing costs, foreign exchange rate
changes (particularly with respect to the U.S. dollar versus the
Japanese yen), and selective price reductions, partially offset by
a higher valued product mix. The adverse effect of foreign
exchange rates reduced gross margin by approximately 1.6 percentage
points. The decrease in gross profit percentage versus the
third fiscal quarter was primarily due to increased fixed
manufacturing costs and foreign exchange rate changes, which
accounted for approximately a 0.7 percentage point reduction,
partially offset by reductions in certain variable costs.
Gross profit margin for the full fiscal year was 48.1 percent of
revenue, which is within the company's guidance range for full
fiscal year 2011 of 48 to 50 percent of revenue. Gross profit
margin decreased from 49.9 percent of revenue in fiscal 2010
primarily due to higher fixed manufacturing costs, foreign exchange
rate changes, which accounted for approximately a 1.5 percentage
point reduction, and selective price reductions, partially offset
by a higher valued product mix. For full fiscal year 2012,
the company expects its gross profit margin to be between 46 and 48
percent of revenue. Compared to fiscal 2011, the company's
gross profit margin guidance for this fiscal year reflects
continued adverse impacts of foreign exchange rates, fixed costs
associated with its new South Korea facility, and uncertainty
within the semiconductor industry and global economy.
Operating expenses, which include research, development and
technical, selling and marketing, and general and administrative
expenses, were $34.1 million in the fourth fiscal quarter,
representing a 4.2 percent increase from $32.7 million in the same
quarter a year ago. The increase was driven primarily by
staffing related costs and foreign exchange rate changes, partially
offset by lower professional fees. Operating expenses were
$0.7 million higher than the $33.4 million reported in the previous
quarter.
For the full year, total operating expenses were $133.7 million,
which is within the company's guidance range for full fiscal year
2011 of $130 million to $135 million, and represents a 3.3 percent
increase from the $129.5 million reported in fiscal 2010. The
increase was driven primarily by higher staffing related costs and
foreign exchange rate changes, partially offset by lower
professional fees. The company expects its operating expense
for full fiscal 2012 will be between $135 million and $140
million.
Net income for the quarter was $9.3 million, down from $15.3
million in the same quarter last year and down from $12.8 million
in the prior quarter, mainly due to the company's lower gross
profit margin, higher operating expenses and a higher effective tax
rate. The effective tax rate in the fourth fiscal quarter
increased due to factors related to share based compensation
expense, primarily stock option exercises during the year, and
taxes related to the company's foreign income. The net effect
of the higher quarterly rate increased the company's annual tax
rate from 32.5 percent in fiscal year 2010 to 34.5 percent in
fiscal year 2011. Net income for the full fiscal year was a
record $51.7 million, up from $49.5 million in fiscal 2010 on
higher revenue, partially offset by a lower gross profit margin,
higher operating expenses and a higher effective tax rate.
Diluted earnings per share were $0.40 this quarter, including an
adverse impact of approximately $0.06 associated with the higher
quarterly effective tax rate, down from $0.66 reported in the
fourth quarter of fiscal 2010 and $0.54 reported in the previous
quarter. Earnings per share for full fiscal year 2011 of $2.20
represent a record level for the company, and are up 3.3 percent
from the $2.13 reported in the previous fiscal year.
CONFERENCE CALL
Cabot Microelectronics Corporation's quarterly earnings
conference call will be held today at 9:00 a.m. Central
Time. The conference call will be available via live webcast
and replay from the company's website, www.cabotcmp.com, or by
phone at (866) 314-9013. Callers outside the U.S. can dial
(617) 213-8053. The conference code for the call is
80697945. A transcript of the formal comments made during the
conference call will also be available in the Investor Relations
section of the company's website.
ABOUT CABOT MICROELECTRONICS CORPORATION
Cabot Microelectronics Corporation, headquartered in Aurora,
Illinois, is the world's leading supplier of CMP polishing slurries
and a growing CMP pad supplier to the semiconductor industry.
The company's products play a critical role in the production
of advanced semiconductor devices, enabling the manufacture of
smaller, faster and more complex devices by its customers. The
company's mission is to create value by developing reliable and
innovative solutions, through close customer collaboration, that
solve today's challenges and help enable tomorrow's
technology. Since becoming an independent public company in
2000, the company has grown to approximately 1,000 employees on a
global basis. For more information about Cabot
Microelectronics Corporation, visit www.cabotcmp.com or contact
Trisha Tuntland, Manager of Investor Relations at (630)
499-2600.
The Cabot Microelectronics Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6902
SAFE HARBOR STATEMENT
This news release may include statements that constitute
"forward-looking statements" within the meaning of federal
securities regulations. These forward-looking statements
include statements related to: future sales and operating
results; company and industry growth, contraction or trends; growth
or contraction of the markets in which the company participates;
international events, regulatory or legislative activity, or
various economic factors; product performance; the generation,
protection and acquisition of intellectual property, and litigation
related to such intellectual property; new product introductions;
development of new products, technologies and markets; natural
disasters; the acquisition of or investment in other entities; uses
and investment of the company's cash balance; and the construction
and operation of facilities by Cabot Microelectronics
Corporation. These forward-looking statements involve a number
of risks, uncertainties, and other factors, including those
described from time to time in Cabot Microelectronics' filings with
the Securities and Exchange Commission (SEC), that could cause
actual results to differ materially from those described by these
forward-looking statements. In particular, see "Risk Factors"
in the company's quarterly report on Form 10-Q for the quarter
ended June 30, 2011 and in the company's annual report on Form 10-K
for the fiscal year ended September 30, 2010, both filed with the
SEC. Cabot Microelectronics assumes no obligation to update
this forward-looking information.
CABOT MICROELECTRONICS
CORPORATION |
|
|
|
|
CONSOLIDATED STATEMENTS
OF INCOME |
|
|
|
|
(Unaudited and amounts in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
Twelve Months Ended |
|
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
|
2011 |
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
|
Revenue |
$ 109,731 |
$ 111,846 |
$ 110,318 |
$ 445,442 |
$ 408,201 |
|
|
|
|
|
|
Cost of goods sold |
58,814 |
58,821 |
56,590 |
231,336 |
204,704 |
|
|
|
|
|
|
Gross profit |
50,917 |
53,025 |
53,728 |
214,106 |
203,497 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research, development &
technical |
14,687 |
14,573 |
13,454 |
58,035 |
51,818 |
|
|
|
|
|
|
Selling & marketing |
7,702 |
7,785 |
7,024 |
29,758 |
26,885 |
|
|
|
|
|
|
General & administrative |
11,677 |
11,008 |
12,202 |
45,928 |
50,783 |
|
|
|
|
|
|
Total operating expenses |
34,066 |
33,366 |
32,680 |
133,721 |
129,486 |
|
|
|
|
|
|
Operating income |
16,851 |
19,659 |
21,048 |
80,385 |
74,011 |
|
|
|
|
|
|
Other income (expense), net |
(873) |
(311) |
(527) |
(1,473) |
(734) |
|
|
|
|
|
|
Income before income taxes |
15,978 |
19,348 |
20,521 |
78,912 |
73,277 |
|
|
|
|
|
|
Provision for income taxes |
6,689 |
6,559 |
5,231 |
27,250 |
23,819 |
|
|
|
|
|
|
Net income |
$ 9,289 |
$ 12,789 |
$ 15,290 |
$ 51,662 |
$ 49,458 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$0.41 |
$0.55 |
$0.67 |
$2.26 |
$2.14 |
|
|
|
|
|
|
Weighted average basic shares
outstanding |
22,816 |
23,119 |
22,821 |
22,896 |
23,084 |
|
|
|
|
|
|
Diluted earnings per share |
$0.40 |
$0.54 |
$0.66 |
$2.20 |
$2.13 |
|
|
|
|
|
|
Weighted average diluted shares
outstanding |
23,191 |
23,797 |
23,002 |
23,435 |
23,273 |
|
|
|
CABOT MICROELECTRONICS
CORPORATION |
|
|
CONSOLIDATED CONDENSED BALANCE
SHEETS |
|
|
(Unaudited and amounts in thousands) |
|
|
|
|
|
|
September 30, |
September 30, |
|
2011 |
2010 |
ASSETS: |
|
|
|
|
|
Current assets: |
|
|
Cash and cash
equivalents |
$ 302,546 |
$ 254,164 |
Accounts receivable,
net |
52,747 |
57,456 |
Inventories, net |
56,128 |
51,896 |
Other current assets |
18,984 |
17,513 |
Total current assets |
430,405 |
381,029 |
|
|
|
Property, plant and equipment, net |
130,791 |
115,811 |
Other long-term assets |
67,033 |
74,916 |
Total assets |
$ 628,229 |
$ 571,756 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 22,436 |
$ 17,521 |
Capital lease
obligations |
10 |
1,296 |
Accrued expenses and
other current liabilities |
33,104 |
34,513 |
Total current
liabilities |
55,550 |
53,330 |
|
|
|
Capital lease obligations, net of current
portion |
2 |
12 |
Other long-term liabilities |
6,323 |
4,071 |
Total liabilities |
61,875 |
57,413 |
|
|
|
Stockholders' equity |
566,354 |
514,343 |
Total liabilities and
stockholders' equity |
$ 628,229 |
$ 571,756 |
CONTACT: Cabot Microelectronics Corporation
Trisha Tuntland, Manager of Investor Relations
(630) 499-2600
www.cabotcmp.com
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